Khaby Lame’s $975M Deal Hinges On Sinking Stock

Hong Kong-based Rich Sparkle Holdings announced plans last month to merge with Khaby Lame’s e-commerce and social media ventures.

The share price of Khaby Lame’s merger partner, Rich Sparkle Holdings (ANPA), has fallen more than 90% since mid-January 2026, putting tremendous pressure on the $975 million all-stock acquisition. 

Lame’s payout was tied to Rich Sparkle’s stock price, which plunged from over $180 last month to $11.19 by Thursday’s close.

In the agreement, which was completed on January 23, 2026, Lame sold Step Distinctive Limited, his running business, for 75 million common shares of the Hong Kong-based company. The ensuing collapse to roughly $11.19 as of late February 2026 has significantly diminished the paper worth of Lame’s payoff, even though the deal briefly valued his interest at an astounding $6.6 billion when the stock peaked at over $180 per share.

The Senegalese-Italian creator rose to fame with silent videos mocking overly complicated life hacks like opening a soda can without just using the tab. He now boasts over 160 million followers, making him TikTok’s most popular influencer.

Under the deal, Rich Sparkle, formerly a financial printing firm, would create an AI avatar of Lame to hawk merchandise and secure brand deals on social media for a commission. The company projected Lame’s likeness could generate up to $4 billion in annual product sales.

In exchange for his intellectual property, Lame’s firm would receive 75 million new Rich Sparkle shares valued at $13 each. However, the estimate means Lame’s stake is only worth that if someone buys the shares at that price, leaving his payout vulnerable to the stock’s fluctuations.

No official filings confirm the deal has closed or been approved by Nasdaq, so Lame’s net worth remains unaffected for now. Representatives for Lame and Rich Sparkle did not respond to requests for comment.

“It’s hard to predict what happens next,” said Wharton management professor Paul Nary. With few public details and a valuation based largely on Lame’s fame, he noted that sharing more financial data could boost confidence. “Normally, you’d have more specifics on the asset being acquired. The entire value depends on that person and his ventures.”

The situation highlights the difficulty many creators face in turning online fame into sustainable businesses. Lame’s deal leans on the growing trend of digital avatars in influencer commerce — especially in China, where AI clones on platforms like Taobao and JD.com can rake in millions per livestream.

Unlike human hosts who tire, AI avatars can sell around the clock. “A machine will keep talking nonstop,” said Alexandre Ouairy of marketing firm PLTFRM.

Lame’s mute style may make him particularly suited for a digital twin. Creator economy advisor Jim Louderback noted that unlike personalities such as MrBeast, Lame’s TikTok persona is detached from his real self, allowing the character to persist even if he steps back.

Rich Sparkle plans to deploy Lame’s avatar for brand deals and TikTok Shop sales in the U.S., Middle East, and Southeast Asia, partnering with Chinese marketing firm Three Sheep Group.

Chinese firms increasingly view avatars as the next frontier in livestreaming, said Ophenia Liang of Digital Crew, and are eager to export the model.

Still, hitting Rich Sparkle’s $4 billion sales target seems far-fetched. By comparison, the livestream platform Whatnot generated $8 billion in global sales in 2025, and Rich Sparkle expects Lame alone to do half that. TikTok Shop’s U.S. sales over the 2024 holiday season’s four biggest days totalled roughly $500 million.

“There would be good revenue, but not $4 billion,” Liang said.

The influencer economy has yet to produce a lasting IPO success. While MrBeast’s firm recently hit a $5 billion valuation, others have stumbled. Triller and Clubhouse Media Group went public via reverse mergers, the same route Lame is taking, only to see steep declines. Triller was delisted from Nasdaq in December after failing to file SEC paperwork.

Reverse mergers offer a cheaper, faster path to public markets than traditional IPOs, but experts urge caution. “I think of them as a poor man’s IPO,” said University of Notre Dame professor Tim Loughran. “Investors should be wary.”

Relying on a single personality poses another risk. FaZe Clan, which went public in 2022, saw its influencer roster implode over contract disputes and was later sold for a fraction of its SPAC-era valuation.

“It’s tough to IPO a company built entirely on an influencer,” Nary said. “Key man risk makes valuation incredibly difficult.”

Even though the deal value is currently “riding on a crashing stock”, Lame still has a sizable personal fortune outside of this contract. According to credible sources, his projected net worth as of February 2026 is between $20 million and $25 million, which includes brand deals with Hugo Boss, Binance, and other companies.